Search found 2088 matches

by MotoTrojan
Wed Sep 19, 2018 7:57 pm
Forum: Investing - Help with Personal Investments
Topic: Concerns over funding priority when investing with debt
Replies: 38
Views: 1723

Re: Concerns over funding priority when investing with debt

I am not very familiar with a mega-backdoor Roth, but my understanding is that the money grows tax-free. Thus there is no reason I can even begin to think of where it would make sense to stop investing in the mega-Roth, and instead invest in taxable. So max the tax-advantaged, and then put anything ...
by MotoTrojan
Wed Sep 19, 2018 6:37 pm
Forum: Investing - Theory, News & General
Topic: Why should bond duration = investment horizon?
Replies: 40
Views: 1777

Re: Why should bond duration = investment horizon?

OP, here. I want to thank everyone for their replies. I think I primarily have difficulty wrapping my head around bond funds. This is also complicated by the number of diverse opinions on Bogleheads regarding fixed income strategy. Does the argument boil down to that there is a duration risk premiu...
by MotoTrojan
Wed Sep 19, 2018 2:12 pm
Forum: Investing - Help with Personal Investments
Topic: Take winnings and go "defensive"???/ Advice
Replies: 6
Views: 1690

Re: Take winnings and go "defensive"???/ Advice

What makes this a high market? AA seems reasonable. You are actually 5% more conservative than your desired 70/30. What accounts are you holding Small-Cap Value and Bonds in? No Roth? Bonds are in tax deferred Traditional IRA’s and so is small cap value. I only have about 10k in a Roth. Is there a ...
by MotoTrojan
Tue Sep 18, 2018 3:31 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 6844
Views: 1495072

Re: U.S. stocks in freefall

I last rebalanced back in December 2017. Continuing on my program of mild rebalancing that has continued since July 2013. So I am five years into this program. My rebalancing is mild as each time I have sold 1% or less each time. That should put me at about 65% stocks and 35% bonds and cash. Market...
by MotoTrojan
Tue Sep 18, 2018 2:58 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 6844
Views: 1495072

Re: U.S. stocks in freefall

I last rebalanced back in December 2017. Continuing on my program of mild rebalancing that has continued since July 2013. So I am five years into this program. My rebalancing is mild as each time I have sold 1% or less each time. That should put me at about 65% stocks and 35% bonds and cash. Market...
by MotoTrojan
Tue Sep 18, 2018 2:58 pm
Forum: Investing - Theory, News & General
Topic: How often do cap weighted funds get adjusted?
Replies: 16
Views: 636

Re: How often do cap weighted funds get adjusted?

Also you can review the turnover % for each fund. 100% means the average asset is held 1 year. VT will be awfully close to 0%. An active trading fund could be well over 100%. The last reported turnover rate for VT (last October) was 9.9% . VTI's (US total stock) turnover rate was 3.1%. , and VXUS (...
by MotoTrojan
Tue Sep 18, 2018 2:55 pm
Forum: Investing - Help with Personal Investments
Topic: Take winnings and go "defensive"???/ Advice
Replies: 6
Views: 1690

Re: Take winnings and go "defensive"???/ Advice

What makes this a high market?

AA seems reasonable. You are actually 5% more conservative than your desired 70/30.

What accounts are you holding Small-Cap Value and Bonds in?

No Roth?
by MotoTrojan
Tue Sep 18, 2018 11:55 am
Forum: Investing - Theory, News & General
Topic: Money Market account in a Roth quick question
Replies: 6
Views: 442

Re: Money Market account in a Roth quick question

Seems like a waste of valuable tax free growth potential. I’d leave the Roth in equities and some bonds as needed.
by MotoTrojan
Tue Sep 18, 2018 10:47 am
Forum: Investing - Theory, News & General
Topic: How often do cap weighted funds get adjusted?
Replies: 16
Views: 636

Re: How often do cap weighted funds get adjusted?

If one were to build VT on their own, would be cap weight % of US stocks, DW stocks, EM stocks that are as close to the holdings of VT and let it roll. Only balancing would be for equities to bond proportions. And between US, DW, and EM stocks. The ratio between these 3 different class of stocks ca...
by MotoTrojan
Tue Sep 18, 2018 10:46 am
Forum: Investing - Theory, News & General
Topic: How often do cap weighted funds get adjusted?
Replies: 16
Views: 636

Re: How often do cap weighted funds get adjusted?

Also you can review the turnover % for each fund. 100% means the average asset is held 1 year. VT will be awfully close to 0%. An active trading fund could be well over 100%.
by MotoTrojan
Tue Sep 18, 2018 10:15 am
Forum: Investing - Theory, News & General
Topic: How often do cap weighted funds get adjusted?
Replies: 16
Views: 636

Re: How often do cap weighted funds get adjusted?

For example: VT Vanguard Total World Stock ETF. How often is it adjusted to the index? Is it a set time? If there were some extreme event to throw the % way off all of a sudden, would there be adjustments to AA right away or not? Just trying to wrap my head around how this stuff works :confused VT ...
by MotoTrojan
Tue Sep 18, 2018 10:02 am
Forum: Personal Consumer Issues
Topic: How to watch baseball playoffs without cable
Replies: 29
Views: 1542

Re: How to watch baseball playoffs without cable

Fubo TV is another to consider. Should be easy enough to verify what provider has the best price and channel coverage for your needs. They all have free 7 day trials (just need to cancel) too.
by MotoTrojan
Tue Sep 18, 2018 10:00 am
Forum: Investing - Theory, News & General
Topic: Advantage of Rebalancing for different asset allocations
Replies: 25
Views: 1380

Re: Advantage of Rebalancing for different asset allocations

Portfolio Visualizer will allow you to experiment with different rebalancing criteria. It can help but it can also hurt. Think about daily rebalancing. During a market downturn you are buying cheapER stocks, but also exposing yourself to more stock if it continues down. In a market rise you’re maint...
by MotoTrojan
Tue Sep 18, 2018 9:43 am
Forum: Investing - Theory, News & General
Topic: Equity in house / Do you use it?
Replies: 56
Views: 3223

Re: Equity in house / Do you use it?

If we ever need long term care the home equity can be used to pay for this either through something like a home equity loan or by selling the house. If you'd owe capital gains taxes on it, it's better to do the loan and let your heirs get a step up in basis. You can do the same in your taxable equi...
by MotoTrojan
Mon Sep 17, 2018 10:05 pm
Forum: Investing - Help with Personal Investments
Topic: California tax free fund or an AMT tax free fund?
Replies: 9
Views: 730

Re: California tax free fund or an AMT tax free fund?

Interesting. I will have more than 70k in taxable income (the threshold for single filers) but a lot of deductions have been eliminated. I’m not really sure. Unless you have much more than $70K the AMT will not be an issue for you. E.g., see Beware of These AMT Triggers . Yup I’m also confused.
by MotoTrojan
Mon Sep 17, 2018 6:54 pm
Forum: Investing - Help with Personal Investments
Topic: Critique my High-Risk Factor Portfolio
Replies: 27
Views: 2057

Re: Critique my High-Risk Factor Portfolio

I'm also curious if this is a fun project, or if you project to need this to meet your financial goals. Little intrigued by the fact you say you may use taxable dividends to fund your Roth, as that makes me think you aren't saving much else. You do know you need taxable income to contribute to a Ro...
by MotoTrojan
Mon Sep 17, 2018 5:25 pm
Forum: Investing - Theory, News & General
Topic: Do vanguard tsm and 500 funds distribute capital gain?
Replies: 7
Views: 660

Re: Do vanguard tsm and 500 funds distribute capital gain?

Hi there, I love the Vanguard TSM and 500 funds, and their ETF class products as well. Will I ever need to worry about some massive capital gain tax distribution that could potentially put me into a massive capital gain tax situation? I believe (someone correct me if not true) it is possible that t...
by MotoTrojan
Mon Sep 17, 2018 5:19 pm
Forum: Investing - Theory, News & General
Topic: Four International ETFs that are better diversifiers than VXUS
Replies: 28
Views: 2128

Re: Four International ETFs that are better diversifiers than VXUS

Maybe you are confusing correlation in movement with correlation in returns. Or maybe I’m not confused at all. Seriously, do you have a question? I’d be happy to explain anything that you are struggling to understand. Why do you feel that VXUS is too similar (not diversified relative) to VTI when t...
by MotoTrojan
Mon Sep 17, 2018 5:17 pm
Forum: Investing - Help with Personal Investments
Topic: Critique my High-Risk Factor Portfolio
Replies: 27
Views: 2057

Re: Critique my High-Risk Factor Portfolio

There are worse ideas, but in general I think it is flawed to lose sight of looking at your entire retirement portfolio as one entity and maintaining your allocation, in a tax-efficient manner, across all accounts. Either way, I'd try to narrow it down to 2-3 funds per category (US vs. Ex-US) as thi...
by MotoTrojan
Mon Sep 17, 2018 2:26 pm
Forum: Investing - Theory, News & General
Topic: Four International ETFs that are better diversifiers than VXUS
Replies: 28
Views: 2128

Re: Four International ETFs that are better diversifiers than VXUS

Maybe you are confusing correlation in movement with correlation in returns.

VXUS and VTI tend to move in the same directions but not always the same magnitude, otherwise we wouldn't see all these threads about International's poor return.
by MotoTrojan
Sun Sep 16, 2018 2:35 pm
Forum: Investing - Help with Personal Investments
Topic: Am I "buying high" if I transfer stable value funds over to stock index fund now?
Replies: 26
Views: 1790

Re: Am I "buying high" if I transfer stable value funds over to stock index fund now?

Lot of concerns here. Why no international? Less worried about the move and more so the reasoning. Why do you expect a correction? We just had one did we not? How often is the market at an all-time high?
by MotoTrojan
Sat Sep 15, 2018 10:30 pm
Forum: Investing - Theory, News & General
Topic: Help w/ large annual bonus
Replies: 16
Views: 1861

Re: Help w/ large annual bonus

I will haul out the usual chestnut. Absent taxes, there is no difference between not investing a lump of cash in stocks and selling stocks you already own. And vice versa. So if you have stocks in tax-advantaged accounts, every market day that you don't sell all those and start DCA with them is equ...
by MotoTrojan
Sat Sep 15, 2018 10:25 pm
Forum: Investing - Help with Personal Investments
Topic: Need help in choosing small cap value fund
Replies: 12
Views: 755

Re: Need help in choosing small cap value fund

I agree, use VIOV or IJS in taxable. Vanguard fund is not only less tax efficient but is also a much larger median cap. No reason you can’t only hold SCV in tax-advantaged though if easier.
by MotoTrojan
Sat Sep 15, 2018 8:40 pm
Forum: Investing - Help with Personal Investments
Topic: Critique, what can I do better?
Replies: 7
Views: 660

Re: Critique, what can I do better?

Agree on Roth.

Why are you in S&P500 and total market? Just do TSM.

I’d pass on the individual stocks.

Having a plan for harvesting losses is a great idea. My point about consolidating into TSM moving forward will help there too.
by MotoTrojan
Sat Sep 15, 2018 5:59 pm
Forum: Personal Finance (Not Investing)
Topic: Financial situation/Health checkup - Stocks vs. Real Estate?
Replies: 14
Views: 1091

Re: Financial situation/Health checkup - Stocks vs. Real Estate?

I’d consider a more broad equity index in 401k, if available.
by MotoTrojan
Sat Sep 15, 2018 5:43 pm
Forum: Investing - Theory, News & General
Topic: Index funds - how do they work? Do passive funds reliant on active funds indirectly?
Replies: 15
Views: 1094

Re: Index funds - how do they work? Do passive funds reliant on active funds indirectly?

You need active traders holding individual stocks but you do not actually need active funds.
by MotoTrojan
Sat Sep 15, 2018 1:17 pm
Forum: Investing - Help with Personal Investments
Topic: US Index or Emerging Index fund in Roth IRA
Replies: 5
Views: 683

Re: US Index or Emerging Index fund in Roth IRA

drk wrote:
Sat Sep 15, 2018 11:18 am
It depends on the small-cap value fund and your own tax situation. For example, based on past years, IJS (iShares S&P Small-Cap 600 Value) is the most tax-efficient fund that I own.
+1. Agree as well that broad index taxable, EM Roth is a sound plan.
by MotoTrojan
Fri Sep 14, 2018 7:53 pm
Forum: Investing - Help with Personal Investments
Topic: Small cap tilt
Replies: 24
Views: 1598

Re: Small cap tilt

I watched a recent Bogle interview where he explained how SCV is only one of the latest trends where it looks like it's outperforming, everyone buys, the price of entry exceeds the outperformance, and we're back to no advantage. I'll sit on my haystack and watch the trendy stuff blow by. No tilt he...
by MotoTrojan
Fri Sep 14, 2018 6:37 pm
Forum: Investing - Help with Personal Investments
Topic: What can you homegrown financial management spreadsheet do?
Replies: 21
Views: 1213

Re: What can you homegrown financial management spreadsheet do?

Latest fun feature is an estimated value of index mutual funds (using equivalent ETFs) during the trading day. After a new daily price posts it updates to that.
by MotoTrojan
Fri Sep 14, 2018 6:27 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Excess Contribution options
Replies: 8
Views: 250

Re: Roth IRA Excess Contribution options

How did you get the all the money into the Roth? If it came from gains in the Roth you have no problem. JW Hi JW, Sorry for the confusion. All of this took place in my Roth IRA. I just listed those other accounts in case it was relevant to my options. The balances are a starting balance Jan 1, 2018...
by MotoTrojan
Fri Sep 14, 2018 6:13 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Excess Contribution options
Replies: 8
Views: 250

Re: Roth IRA Excess Contribution options

If you expect to be able to contribute $5500 next year do NOT recharaterize. You pay an annual 6% on tbe contribution amount for excess. You can roll this $5500 to next year on tax forms and keep this tax free growth.
by MotoTrojan
Fri Sep 14, 2018 5:02 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Excess Contribution options
Replies: 8
Views: 250

Re: Roth IRA Excess Contribution options

Hi all, I'm finding myself in a hard to understand situation. I made a partial contribution of around $900 in January 2018. I then sold out of a large equity position in March 2018. I contributed the rest of the $4600 contribution after I sold the equity. The selling of the equity put me over the i...
by MotoTrojan
Fri Sep 14, 2018 4:57 pm
Forum: Investing - Theory, News & General
Topic: Why do we expect TSM to keep growing?
Replies: 62
Views: 6199

Re: Why do we expect TSM to keep growing?

Another exception could be the fewer companies participate in publicly traded equity markets. That has not happened over a significant time period that I know of when measured by market capitalization. Some have feared that the small-cap premium could be reduced since many of the most successful bu...
by MotoTrojan
Fri Sep 14, 2018 4:52 pm
Forum: Investing - Help with Personal Investments
Topic: VTSAX and VTMSX in taxable
Replies: 12
Views: 1472

Re: VTSAX and VTMSX in taxable

I like that small-cap fund not because it is "tax-managed" but because it tracks the S&P600, which is much smaller than Vanguard's CRSP indexes it's other small-cap funds track. I'd still hold the S&P600 index directly, and I personally prefer small-VALUE so I would go with VIOV. But this should be ...
by MotoTrojan
Fri Sep 14, 2018 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: Extra Mortgage Amount
Replies: 7
Views: 438

Re: Extra Mortgage Amount

Also confused. I’d avoid PMI as suggested.

The days of 110% mortgages are behind us, thankfully.
by MotoTrojan
Thu Sep 13, 2018 5:03 pm
Forum: Investing - Theory, News & General
Topic: SLYV vs IJS [SPDR vs. iShares S&P 600 Small Cap Value]
Replies: 92
Views: 4795

Re: SLYV vs IJS [SPDR vs. iShares S&P 600 Small Cap Value]

You aren't seeing any trades because there aren't any, that doesn't mean people are trying. I don't think you understand jhfenton's point. He might be right but I don't see the evidence. Maybe it's there. But why guess when I can see better trade execution with IJS. Have considered moving to IJS in...
by MotoTrojan
Thu Sep 13, 2018 4:38 pm
Forum: Investing - Theory, News & General
Topic: SLYV vs IJS [SPDR vs. iShares S&P 600 Small Cap Value]
Replies: 92
Views: 4795

Re: SLYV vs IJS [SPDR vs. iShares S&P 600 Small Cap Value]

But the underlying S&P 600 securities trade more, and if you want to buy thousands of shares of VIOV the market maker can make them very efficiently. How do I know that? I would guess that it was a limit order that didn't execute fully. There is no way that a 400 share market order would not execut...
by MotoTrojan
Wed Sep 12, 2018 10:27 am
Forum: Investing - Help with Personal Investments
Topic: Going off-track of asset allocation due to high savings rate
Replies: 47
Views: 2790

Re: Going off-track of asset allocation due to high savings rate

All that matters is what % you have in each at the end of the day. The history of your account balance and allocation are completely irrelevant. It doesn't matter what you purchased today, last week, or last year, and it doesn't matter what your previous account balances were. So pick a % you want ...
by MotoTrojan
Wed Sep 12, 2018 10:25 am
Forum: Personal Finance (Not Investing)
Topic: Should I Convert Traditional IRA to Roth, and How Do I Pay Estimated Tax
Replies: 31
Views: 2283

Re: Should I Convert Traditional IRA to Roth, and How Do I Pay Estimated Tax

No. Not even close. Stop even thinking about it. +1 Ricchan, see above quote and apply it to your pre-tax IRA balance Now, if your current 401k has decent investment options and fees, and will accept incoming rollovers from your IRA, you might 1) Roll over your current pre-tax IRA balance to the 40...
by MotoTrojan
Wed Sep 12, 2018 10:05 am
Forum: Investing - Help with Personal Investments
Topic: Going off-track of asset allocation due to high savings rate
Replies: 47
Views: 2790

Re: Going off-track of asset allocation due to high savings rate

Also can you provide what metric shows the US is overvalued? It has outperformed recently but in the very longterm (1900+) we actually are right on pace. P/E also looks to be just a tad over the longterm average.
by MotoTrojan
Wed Sep 12, 2018 10:02 am
Forum: Investing - Help with Personal Investments
Topic: Going off-track of asset allocation due to high savings rate
Replies: 47
Views: 2790

Re: Going off-track of asset allocation due to high savings rate

So why not decide on 60% and move it all now?

Good luck. I think you’re establishing poor habits which will impact you when your artificial NW (hopefully) becomes reality.
by MotoTrojan
Wed Sep 12, 2018 1:07 am
Forum: Investing - Help with Personal Investments
Topic: Hypothetical Question - Market Timing
Replies: 43
Views: 2354

Re: Hypothetical Question - Market Timing

This is strictly a hypothetical situation for educational purposes only. I know that market timing is not a great strategy. Here's the 2 different scenarios... Market today - S&P 500 @ 3,000 1) If I invest 10,000 today in a S&P 500 index fund, and the market drops by 50% over the next 6 months, the...
by MotoTrojan
Wed Sep 12, 2018 12:48 am
Forum: Investing - Help with Personal Investments
Topic: Going off-track of asset allocation due to high savings rate
Replies: 47
Views: 2790

Re: Going off-track of asset allocation due to high savings rate

(although again, this issue is not really about market timing per se, but more related to the feeling of needing to invest large amounts of money relative to my NW; outside of an inheritance or winning the lottery, that probably won't happen again for me). I find it fascinating how you are trying t...
by MotoTrojan
Wed Sep 12, 2018 12:43 am
Forum: Investing - Theory, News & General
Topic: russell2000,1000 and S&P 500
Replies: 4
Views: 521

Re: russell2000,1000 and S&P 500

Hi BH How it tracks the market and what is included in the index. --The Russell 2000 and 1000, and S&P 500 What is the difference between the benchmark the S&p 500 and --the Russell 2000, and Russell 1000.-- how it tracks the market. and according to report the Russell ( 8.30%) is better performing...
by MotoTrojan
Wed Sep 12, 2018 12:03 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard ETF to Fidelity ETF
Replies: 9
Views: 759

Re: Vanguard ETF to Fidelity ETF

You don't need to sell your Vanguard ETFs to transfer them to Fidelity. Just transfer them over and keep holding onto them. Then no taxes are involved. This. But they would still remain the same ticker; you are looking for an in-kind transfer so Fidelity holds the shares. For future purchases from ...
by MotoTrojan
Tue Sep 11, 2018 11:59 pm
Forum: Investing - Theory, News & General
Topic: Mother, can I trust the stock market?
Replies: 19
Views: 2252

Re: Mother, can I trust the stock market?

nice Pink Floyd reference (the title) "Mother do you think they'll drop the bomb? Mother do you think they'll like this song? Mother do you think they'll try to break my balls? Ooh, ah Mother should I build the wall? Mother should I run for President? Mother should I trust the government? <------ t...
by MotoTrojan
Tue Sep 11, 2018 7:48 pm
Forum: Investing - Help with Personal Investments
Topic: Going off-track of asset allocation due to high savings rate
Replies: 47
Views: 2790

Re: Going off-track of asset allocation due to high savings rate

Frankly I’m confused. Why is your AA drifting so much? You clearly understand things well enough to adjust your contribution breakdown to stay within say a 5% band. Maybe I didn't explain it well. I could certainly rebalance or alter purchase decisions to get back within my AA. But my savings rate ...
by MotoTrojan
Tue Sep 11, 2018 7:45 pm
Forum: Investing - Help with Personal Investments
Topic: 401K vs Taxable Brokerage Account
Replies: 17
Views: 1265

Re: 401K vs Taxable Brokerage Account

Lets look at it from this hypothetical perspective- If I invested $18500 in the same mutual fund in both a taxable account and a 401K for 30 years would one be higher than the other assuming no 401k match? This isn’t Apples to Apples. $18500 invested in a 401K would only cost me about $12,000 of ta...